Indonesia is outlining a railway blueprint for the Kalimantan mining area, with a total length of 2772 kilometers across islands, which is expected to become one of the largest railway projects in Southeast Asia. Both China and Russia have expressed interest and are waiting for investors to submit their proposals.

Kalimantan hopes for connectivity

Kalimantan is rich in coal, nickel, and bauxite deposits, and is also the location of the new capital Nusantara. However, there has been no public railway for a long time, causing transportation bottlenecks in the area. Indonesia hopes to use railways to reduce transportation costs for minerals and agricultural products, and strengthen transportation links between resource development and the new capital. In August, Minister of Transport Dudipur Wagandi stated that he has been in talks with China and Russia, and both countries are assessing commercial feasibility and waiting for a formal plan. President Prabowo also promoted the Kalimantan railway in Sumatra. Keywords: Cross Kalimantan Railway, Foreign Investment Cooperation

Foreign investment entering the bureau to discuss financing

Chinese companies are deeply involved in the Indonesian railway industry. The Jakarta Bandung high-speed railway, which will be opened in 2023, is the first high-speed railway in Southeast Asia and has accumulated operational experience. This has also made Indonesia more concerned about the sustainability of large-scale project financing, risk sharing, and commercial returns. China's overseas investment is becoming increasingly cautious, placing greater emphasis on commercial feasibility and risk. Facing the 2772 kilometer mega project, we may explore a cooperation model of phased construction and diversified financing. At present, the cooperation partner is undecided, and the investment amount and financing plan have not been announced. Whether they can be implemented depends on the feasibility study.Editor/Min Jing